BAE Systems Pension Schemes Trustees Appoint Goldman Sachs Asset Management for Approximately £23 Billion UK Pension Schemes Mandate
LONDON – September 6, 2023 – The Trustees of the BAE Systems Pension Scheme and BAE Systems Executive Pension Scheme (“the Trustees” of “the Schemes”) have outsourced the management of their approximately £23 billion UK defined benefit pension scheme assets to Goldman Sachs Asset Management.
BAE Systems’ in-house investment management team will join Goldman Sachs Asset Management and continue to provide investment services to the Schemes. It is expected that the asset management and team transition to Goldman Sachs Asset Management will take place towards the end of 2023.
The agreement offers continuity to the Trustees, who will benefit from the global investment capabilities of Goldman Sachs across public and private markets, whilst maintaining the expertise of the existing in-house team. The agreement is expected to deliver performance and cost benefits for the Schemes through the greater scale and efficiency that Goldman Sachs can achieve as one of the world’s leading asset managers with more than £2.1 ($2.7) trillion in assets under supervision.
The agreement reflects the continued evolution of the UK pensions market and is the largest Outsourced Chief Investment Officer (“OCIO”) appointment in the UK to date.
The Trustees’ decision to appoint Goldman Sachs Asset Management follows a highly competitive tender process.
The appointment affirms Goldman Sachs Asset Management’s position as the second largest OCIO manager globally and one of the largest in the UK, with global OCIO assets under supervision of more than £200 billion. Goldman Sachs Asset Management has proven capabilities in liability driven investing (“LDI”), cashflow driven investing (“CDI”), sustainable investing, external manager selection and private markets. The mandate also expands Goldman Sachs Asset Management’s position in the UK LDI and CDI markets, adding to the approximately £175 billion managed by the firm globally in LDI and CDI portfolios.
Notes for Editors
About Goldman Sachs Asset Management
Goldman Sachs Asset Management delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs oversees more than £2.1 ($2.7) trillion in assets under supervision as of June 30, 2023.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
In public markets, Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity and multi-asset solutions. It is one of the largest managers of private capital globally and invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, infrastructure and sustainability.
Media Contacts
For Goldman Sachs:
Matthew Newton
+44 207 774 9649
For BAE Systems:
Kristina Anderson
+44 7540 628673